SUPPLIER TERMS AND CONDITIONS

SUPPLIER TERMS AND CONDITIONS

1. FLOW DOWN

Suppliers are required to flow down all of the requirements of this purchase order to sub-tier suppliers and special processors including customer requirements. Suppliers are required to notify H&H Machining Center of changes in the product or process, changes in sub-tier suppliers, changes of suppliers facility location and when required obtain approval of changes from H&H Machining Center.

2. QUALITY SYSTEM

The supplier shall have in place a system / program that conforms to: Quality Management System / Program Requirements latest revision of AC7004, ISO 9001 or AS9100.

The suppliers must maintain a minimum of 95% product quality and 95% on-time delivery performance.

The supplier must ensure that persons are aware of their contribution to product or service conformity; their contribution to product safety; and the importance of ethical behavior.

3. CALIBRATION LABS

The contractor’s calibration system must conform to the latest revision of ISO/IEC 17025, ANSI/NCSL Z540.1 or ISO 10012-1. All Certifications will state, as a minimum, that all standards used are traceable to the National Institute of Standards and Technology, date of calibration, date of expiration, list those standards used, and the technician’s signature.

4. QUALIFICATION OF PERSONNEL

Supplier shall ensure that all personnel assigned to perform the services required for the products(s) ordered on this P.O are capable, skilled, qualified and competent.

5. FIRST ARTICLE (FAIR)

For conventional and non-conventional machining a First Article Inspection report (AS9102) is required with shipments to H&H Machining Center if noted on the purchase order. The report shall include all drawing dimensions, test results, raw material chemical & physical test reports and special process certifications.

6. CERTIFICATE OF CONFORMANCE (C OF C)

a. Manufacturers shall provide a certificate of conformance with each shipment, which states that the product supplied meets all drawing, specification and purchase order requirements. The C of C shall reflect the part number(s) listed on the H&H Machining Center purchase order, the production lot numbers, and shall be signed by an authorized supplier representative of the manufacturer.
b. Distributors shall provide their own certificate of conformance and provide the manufacturer’s certificate of conformance as required per the purchase order.
c. Processing Suppliers must furnish processing certifications to the purchase order requirements and shall not process any parts for which they are not certified or approved.
d. Supplier must provide Material Safety Data Sheets (MSDS) and/or certificates of compliance for restricted, toxic, or hazardous substances.
e. As required per the purchase order, the supplier shall also provide raw material certifications, special processing certifications (heat treat, plating NDT, etc.) and test reports for all of the tests required by the drawing and procurement specification.

7. FOREIGN OBJECT DEBRIS (FOD) PREVENTION

The supplier shall employ appropriate housekeeping practices to assure timely detection and removal of residue/debris generated, if any, during operations and/or normal daily tasks and shall ensure FOD requirements are flowed down to sub-contractors and suppliers at every tier.

8. RECORDS RETENTION

Supplier’s records of manufacturing, processing, inspection, and testing will be retained on file, at the supplier’s facility, for a minimum of fifteen (15) years after the completion of this contract and then properly destroyed i.e. shred.

9. RIGHT OF ACCESS

During the performance of this contract your facilities (including all levels of the supply chain), quality management system, manufacturing processes and all applicable records are subject to on-site review and verification. By accepting this purchase order you (the Supplier) agree to allow entry to representatives of H&H Machining (the Buyer), the Buyer’s Customer, and/or representatives of the Government or any legal agency to perform this review or inspection.

10. NONCONFORMING PRODUCT

Supplier shall have a system in place to identify nonconforming product/service/process. If a nonconformance is discovered prior to shipment that does not affect form, fit, or function, a request for waiver may be submitted. All such requests must be made in writing. Under no circumstances shall shipment be made without written approval from H&H Machining Center. If nonconformity is discovered subsequent to shipment, the supplier is required to notify H&H Machining Center within 48 hours with nonconformance details and proposed action to be taken. Failure to process per H&H instructions on the purchase order which results in a scrapped product will be the sole financial liability of processor (Vendor/Supplier). The cost will be determined by the material, manufacturing and pre-existing processing costs.

11. MERCURY FREE

Supplier is responsible to ensure that the products supplied did not come into contact with mercury or mercury compounds during manufacturing or subsequent processing.

12. INSPECTION AND TESTING

All products ordered under this P.O should meet the applicable drawings, specifications, standards and purchase order requirements. Supplier shall subject all products to inspection and test to ensure products meet the entire above requirement.

13. REVISION CONTROL

Unless otherwise stated under this contract the revision level of any defined specifications will be the revision level in effect on the date that this contract was issued or later. The supplier is responsible for supplying all material, products or services in accordance with these requirements. The supplier will be responsible to both obtain and maintain the current issues of any specifications, standards and other applicable documents referenced under this purchase order.

14. PRODUCT/PROCESS CHANGES NOTIFICATION

The Supplier shall notify H&H Machining of any changes to processes, products, or services, including any changes of suppliers or location of manufacture and obtain H&H Machining approval.

15. TRACEABILITY

Supplier shall provide a Certificate of Conformance, with H&H Machining purchase order clearly noted on it, with each shipment. At a minimum, the certifications provided shall be in English. Supplier must ensure that all certifications (Manufacturers Certificate of Conformance, Test Reports, Process Certs, Raw Material etc.) for a part is traceable to one another by either a lot number, date code, heat number, job or work order number or material P.O. number. All certifications must be legible. Changes or amendments to any certification paperwork must identify the authorizing party via signature, initial, stamp, or any other similar method, along with amendment date.

16. PROPRIETARY INFORMATION

Supplier shall hold confidential all blueprints, electronic data sets, sketches, tooling, etc. provided with this Purchase Order. Distribution shall be restricted to necessary sub-contractors as required for the performance of work on this Purchase Order. All Proprietary Information will be returned to H&H Machining at the completion of work to this Purchase Order.

17. INSPECTION / TEST REPORTS

Each shipment must be accompanied by a legible and reproducible copy of reports of actual results identifiable with inspection / test parameters and products submitted. These reports must contain the signature and title of the authorized representative of the agency performing the test and must assure conformance to specified requirements. The inspection / test reports must also be traceable to the Purchase Order and/or the items referenced.

18. SPECIAL PROCESSES

H&H requires that special processes shall be performed by sources that are accredited by the National Aerospace and Defense Contractors Accreditation Program (Nadcap). This requirement applies whether the process is performed by the Seller or by Seller’s sub-tier sources. Special Processes include but not limited to: NDT, Heat Treat, Plating/Coating, Welding and Chemical Processing.

19. SHELF LIFE CONTROL

All shelf life sensitive materials must have a minimum of 75% remaining at the time of receipt at H&H Machining Center. Expiration date shall be specified on the certificate of conformance.

20. HANDLING, PACKING AND SHIPPING

The supplier is responsible to ensure that the goods shipped to H&H Machining Center are protected from any damage during the production, process, inspection, packing and shipping. If any products are received damaged they will be subject to rejection.

21. CONFLICT MINERALS

Any Purchase Order calling for the purchase of Tantalum, Tin, Tungsten or Gold components are to be sourced to the best of the supplier’s ability from areas that are in compliance with the Dodd-Frank Wall Street Reform Act of 2010. H&H Machining Center reserves the right to ask for an official statement on the supplier’s Conflict Minerals policy at any time.

22. FRAUDULENT/COUNTERFEIT PREVENTION

The supplier must have a process to prevent the delivery of counterfeit parts and control parts identified as counterfeit. If suspect/counterfeit parts including material are furnished under this purchase order and are found by H&H Machining Center, such parts shall be quarantined. The Supplier shall promptly replace such items with items acceptable to H&H Machining Center and the Supplier shall be liable for all costs relating to quarantine, removal and replacement of such products.  H&H Machining Center may turn such items over to the U.S.  Office of Inspector General or for investigation and reserves the right to withhold payment for the suspect items pending the results of the investigation.

23. METALS

By accepting this order, you certify that the metals supplied under this purchase order were melted in the United States or a qualified country as defined in DFAR 252.225-7009.
If this is a Specialty Metal as defined in DFAR 252.225-7009, you must supply certifications that the metal has been domestically melted. Certifications from the melt source must be supplied with each shipment.

24. INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR)

Applicable to military and dual application contracts only.
The technical data herein provided is subject to export control under the International
Traffic in Arms Regulations (ITAR) or the Export Administration Regulations (EAR). Such data should not be disclosed, exported or transferred in any manner to any foreign person or any foreign country without the prior written approval of the Office of Defense Trade Controls, U.S. Department of State or the Bureau of Industry and Security, U.S. Department of Commerce.